Sun says he could spend $ 5 billion to save crypto, even if the USDD struggles to keep the bond

Sun says he could spend $ 5 billion to save crypto, even if the USDD struggles to keep the bond

Justin Sun, founder of the Great Blockchain network Tron, said that he was ready to support companies in the field of digital assets together with FTX CEO Sam Bankman-Fried, which are struggling in view of the ongoing market volatility.

In a tweet in the early this month, Sun said that he and the Tron protocol were "ready for use".

Sun said that, according to a report from The Block, he could spend up to $ 5 billion for acquisitions, but since Trons algorithmic stable coin USDD is fighting to recover from a recently depegging, an analyst in question.

"I don't think he says that he has this capital for the benefit of the industry, but I think it serves public relations how strong the foundation is at Tron," said Marcus Sotiriou, analyst at the digital asset broker global block. "If it matters, I don't think they would actually be able to use $ 5 billion."

mid -June, just a few months after its introduction, the USDD fell up to $ 0.93 and still has to recover to over $ 1.

The Tron Dao pulled 2 billion trx, trons natives tokens on June 13, to protect the USDD bond. On June 17, the DAO pulled out another 3 billion Trx to defend the bond. The withdrawal of Trx is part of a more comprehensive strategy to limit the liquidity for retailers, the TRX sell, and prevent a breakdown. TRX is used to redeem USDD, similar to the relationship between Luna and VAT

according to trons website has its DAO reserves of 2.3 billion US dollars-if the protocol used a considerable amount of reserves to save other members of the industry, the stability of USDD could be threatened, Sortiriou.

"If Trons StableCoin were in danger ... That would have an enormous impact because it has now achieved a fairly considerable size, but I don't think it would be so catastrophic because we already had the collapse of Luna and VAT, which was a total value of $ 100 billion," said Sotiriouu. "It is now obvious that algorithm stable coins cannot be fully familiar."

The SUN's offer comes, while Bankman-Fried continues to distribute money after the collapse of Three Arrows Capital and Celsius' insolvency fights to help struck sectors in the crypto industry.

ftx agreed to take over Bitvo and embed with finance , and the stock exchange extended blockfi of a credit line of 250 million US dollar. Alameda Research, founded by Bankman-Fried, borrowed Voyager $ 500 million.

Sun did not react immediately to the request from Blockworks after a comment.

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The post Sun says he could spend $ 5 billion to save crypto, even if USDD fights to keep PEG, is not financial advice.